[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"detail-sidebar-cat-1-en-105":3,"doc-seo-303813-105":53,"doc-detail-303813-en":118},{"code":4,"msg":5,"data":6},0,"success",[7,14,19,24,29,34,39,44,49],{"id":8,"doc_module":9,"doc_module_name":10,"category_name":11,"show_sort_weight":12,"slug":13},11,1,"Template","Presentations",90,"presentations",{"id":15,"doc_module":9,"doc_module_name":10,"category_name":16,"show_sort_weight":17,"slug":18},12,"Resumes",80,"resumes",{"id":20,"doc_module":9,"doc_module_name":10,"category_name":21,"show_sort_weight":22,"slug":23},14,"Invoices",70,"invoices",{"id":25,"doc_module":9,"doc_module_name":10,"category_name":26,"show_sort_weight":27,"slug":28},15,"Posters",60,"posters",{"id":30,"doc_module":9,"doc_module_name":10,"category_name":31,"show_sort_weight":32,"slug":33},16,"Social Media",50,"social-media",{"id":35,"doc_module":9,"doc_module_name":10,"category_name":36,"show_sort_weight":37,"slug":38},17,"Forms",40,"forms",{"id":40,"doc_module":9,"doc_module_name":10,"category_name":41,"show_sort_weight":42,"slug":43},18,"Letters",30,"letters",{"id":45,"doc_module":9,"doc_module_name":10,"category_name":46,"show_sort_weight":47,"slug":48},21,"Paper Templates",5,"papers-templates",{"id":50,"doc_module":9,"doc_module_name":10,"category_name":51,"show_sort_weight":4,"slug":52},158,"General","general-158",{"code":4,"msg":54,"data":55},"ok",{"site_id":56,"language":57,"slug":58,"title":59,"keywords":60,"description":61,"schema_data":62,"social_meta":111,"head_meta":113,"extra_data":115,"updated_unix":117},105,"en","selected-pass-through-entity-tax-issues-2023","Selected Pass-Through Entity Tax Issues - 2023","","Selected Pass-Through Entity Tax Issues from the Pennsylvania Bar Institute (August 1, 2023) compiles practitioner-focused analysis on partnership and S corporation transaction tax topics. It covers partnership M&A tax considerations, including IRC §741 entity vs. aggregate treatment, IRC §751 “hot assets” and limitations on installment treatment, and how EIN-related and employment tax issues can affect planning. The material also addresses IRC §754 election mechanics, basis step-ups, and disguised sale principles.",{"@graph":63,"@context":110},[64,80,101],{"@type":65,"itemListElement":66},"BreadcrumbList",[67,71,74,77],{"item":68,"name":69,"@type":70,"position":9},"https://docshare.wps.com","Home","ListItem",{"item":72,"name":10,"@type":70,"position":73},"https://docshare.wps.com/template/",2,{"item":75,"name":51,"@type":70,"position":76},"https://docshare.wps.com/template/general/",3,{"item":78,"name":59,"@type":70,"position":79},"https://docshare.wps.com/template/selected-pass-through-entity-tax-issues-2023/303813/",4,{"url":78,"name":59,"@type":81,"image":82,"author":87,"headline":59,"publisher":90,"fileFormat":93,"inLanguage":57,"description":61,"dateModified":94,"datePublished":95,"encodingFormat":93,"isAccessibleForFree":96,"interactionStatistic":97},"DigitalDocument",{"url":83,"@type":84,"width":85,"height":86},"https://docshare.wps.com/thumbnails/selected-pass-through-entity-tax-issues-2023/303813.png","ImageObject",442,249,{"name":88,"@type":89},"Melati","Person",{"url":68,"name":91,"@type":92},"DocShare","Organization","application/pdf","2026-09-22","2026-09-19",true,{"@type":98,"interactionType":99,"userInteractionCount":9},"InteractionCounter",{"@type":100},"ViewAction",{"@type":102,"mainEntity":103},"FAQPage",[104],{"name":105,"@type":106,"acceptedAnswer":107},"How is a disguised sale of a partnership interest analyzed?","Question",{"text":108,"@type":109},"The material states that a sale of a partnership interest relies on the entity theory rather than the aggregate theory, treating the partner’s ownership interest as a separate asset that can be purchased and sold.","Answer","https://schema.org",{"og:url":78,"og:type":112,"og:title":59,"og:site_name":91,"og:description":61},"article",{"robots":114,"canonical":78},"index,follow",{"doc_id":116,"site_id":56},303813,1790060825,{"code":4,"msg":5,"data":119},{"doc_id":116,"user_id":120,"nickname":88,"user_avatar":121,"doc_module":9,"category_id":50,"category_name":51,"doc_title":59,"doc_description":61,"doc_content":122,"file_id":123,"file_url":124,"file_type":125,"file_size":126,"view_count":76,"is_deleted":4,"is_public":9,"is_downloadable":9,"audit_status":9,"page_count":127,"language":128,"language_code":57,"site_id":56,"html_lang":57,"table_of_contents":129,"faqs":130,"seo_title":131,"seo_description":61,"update_tm":132,"read_time":133},962085570644,"https://ap-avatar.wpscdn.com/davatar_994ba38a5ba835b3df7d355c54d3ed8d","# Selected Pass-ThroughEntity Tax Issues\n\nPennsylvania Bar InstituteAugust 1,2023  \nChristopher A.Jones,EsquireBallard Spahr LLP  \nJonesc@ballardspahr.com215.864.8424  \nMorgan Klinzing,EsquireTroutman Pepper  \nMorgan.Klinzing@troutman.com215.981.4560  \n# The Panel\n\nWendiL.Kotzen,EsquireBallard Spahr LLP  \nKotzenw@ballardspahr.com215.864.8305  \nDean V.Krishna,EsquireStradley Ronon  \ndkrishna@stradley.com215.564.8707  \n·Partnership M&A Tax Considerations  \n·S Corporation M&A Tax Considerations  \n·S Corporation F Reorganizations  \n·EIN-Related Issues  \n·Tax Due Diligence Considerations  \n·Selected Employment Tax Consideraions  \n## Partnership M&A TaxConsiderations\n\nSale of a Partnership Interest-Entity v.Aggregate  \n·The Code takes a middle ground on the sale of a partnershipinterest.  \n·General Rule:Entity Approach  \n·IRC§741:Gain or loss on the sale of a partnership interest iscapital.  \n·Exceptions:Aggregate Approach  \n·IRC§751:Part of the gain or loss is ordinary to the extentattributable to certain ordinary income assets.  \n·IRC§754 Election or Substantial Built-in Loss:Adjustments tothe basis of partnership assets.  \nAggregate vs.Entity  \n## Sale of Partnership Interests\n\n·Entity:Sale of interests without regard to character of the assets  \n·Aggregate:Sale of partnership's interest in underlying assets.Blackacre Cash $100FMV $200Basis $100  \n·  Hypo:Each of A and B contribute $100 cash to PRS.PRS buys Blackacrefor $100.One year later,B wants to sell his interest in PRS to C for$150.Differences in treatment if sale of interest v.asset?  \n## Aggregate vs.EntitySale of Partnership Interests\n\nA/R $300  \n·  Hypo:Each of A and B contribute $100 cash to PRS.One year later,PRSholds account receivables of $300.B wants to sell his interest in PRS to Cfor $150.Differences in treatment if sale of interest v.asset?  \n## Section 751 Considerations\n\n·IRC§751(a):The amount of any money,or the fair market value ofany property,received by a transferor partner in exchange for all ora part of his interest in the partnership attributable to:  \n·unrealized receivables of the partnership,or  \n·inventory items of the partnership  \nshall be considered as an amount realized from the sale or exchange ofproperty other than a capital asset.  \n·Commonly referred to as \"hot assets.\"  \n·IRC§751 Regulations use a hypothetical sale approach todetermine gain attributable to hot assets.  \n·No installment sale treatment for IRC§751 gain.  \n## Election to Step-up Basis\n\n·IRC§754 election allows a basis adjustment under IRC§743(b)related to the selling partner's recognition of gain or loss on the saleof the interest.  \n·Default is no adjustment to basis of assets →basis disparity forinside and outside basis.  \n·Basis disparity can lead to surprising results.  \n·Adjustment is mandatory if the partnership has a substantial built-inloss.  \n## Disguised Sale\n\n·A sale of a partnership interest relies on the entity theory,not theaggregate theory.  \n·This means the ownership interest a partner has in a partnershipis treated as a separate asset that can be purchased and sold.  \n·The general rule is the selling partner treats the gain or loss on thesale of the partnership interest as the sale of a capital asset (seeIRC§741).","cbCaiq3flko3N0Xn","https://ap.wps.com/l/cbCaiq3flko3N0Xn","pdf",885738,68,"English","# The Panel\n# Partnership M&A Tax Considerations\n## Partnership interests: entity vs. aggregate\n## Section 751 considerations\n## Election to step-up basis\n## Disguised sale","[{\"question\":\"How is a disguised sale of a partnership interest analyzed?\",\"answer\":\"The material states that a sale of a partnership interest relies on the entity theory rather than the aggregate theory, treating the partner’s ownership interest as a separate asset that can be purchased and sold.\"}]","Selected Pass-Through Entity Tax Issues - 2023 | PDF",1789807298,24]